Tariff escalation and invasive species damages

Anh Thuy Tu, John Beghin, Estelle Gozlan

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

We investigate the interface between trade and damages from invasive species (IS), focusing on escalation in tariffs between raw-input and processed-good markets, and its implication for IS-based damages. The current tariff escalation in processed agro-forestry products motivates our analysis. Tariff escalation exacerbates the likelihood of IS introduction by biasing trade flows towards increased trade of primary commodity flows and against processed-product trade. We show that a reduction of tariff escalation, by lowering the tariff on processed goods increases allocative efficiency and reduces IS-based damages, a win-win situation. We also identify policy menus for trade reforms involving tariffs on both raw input and processed goods leading to win-win situations.

Original languageEnglish (US)
Pages (from-to)619-629
Number of pages11
JournalEcological Economics
Volume67
Issue number4
DOIs
StatePublished - Nov 1 2008
Externally publishedYes

Keywords

  • Agriculture
  • Damages
  • Exotic pest
  • Forestry
  • Invasive species
  • Tariff escalation
  • Trade

ASJC Scopus subject areas

  • Environmental Science(all)
  • Economics and Econometrics

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